China’s consumer prices rise lower than expected

China consumerAccording to the latest figures released, China's consumer prices have risen lower than expected during the month of October.

The National Bureau of Statistics said today in Beijing that the consumer price index rose 3.2 per cent in October compared to 3.3 per cent median estimate in a Bloomberg News survey. China's annual consumer inflation increased to the level of 3.1 per cent in September, which was its highest in several months. The October CPI gain was the highest since February when the index also rose 3.2 per cent.

The data also showed that factory-gate deflation increased for the first time in five months in the world's second largest economy. Data showed that the producer prices fell by 1.5 per cent during the month compared to 1.3 per cent in the previous month. The inflation has remained the government's 3.5 per cent full-year target and this might allow Communist Party leaders to hold on the credit policy when they gather in Beijing for an economic summit.

The statistics bureau will publish October data on industrial output and retail sales soon. The agency will also release money supply and lending numbers by 15 November.